Tomato crisis in California as drought intensifies

California, which accounts for a quarter of the world’s tomato output, is facing its worst crisis. Lack of adequate rainfall is forcing farmers to brace for a water crisis that’s undermining the crop cultivation.

As a result, the low production is having an impact on the prices of tomato-based products.

According to Bloomeberg, gains in tomato sauce and ketchup are overtaking the rise in US food inflation, which is at its highest in 43 years.

With weather agencies predicting hotter and drier conditions in the upcoming months, the outlook for farmers remains uncertain.

“We desperately need rain. We are getting to a point where we don’t have inventory left to keep fulfilling the market demand,” Mike Montna, head of the California Tomato Growers Association, was quoted as saying.

Moreover, the authorities have limited groundwater usage, and rising labour costs, fuel and fertilizer are making it difficult for producers to grow tomatoes.

“It’s real tough to grow a tomato crop right now,” Montna said. “On one side you have the drought impacting costs because you don’t have enough water to grow all your acres, and then you have the farm inflation side of it with fuel and fertilizer costs shooting up.” 

Rick Blankenship, vice president of farming operations, Woolf Farming, said it now takes $4,800 an acre to grow and harvest a tomato crop compared with $2,800 a decade ago. Much of the rise has been witnessed in the last two years.

Data by the US Department of Agriculture indicated that the crop has been below the recent production peak of 14.4 million tons in 2015 for the past six years, and 2022 is continuing with the trend.

“Despite low supply and a substantial increase in price, contracted production has dropped significantly compared to the beginning of 2022,” it said in its May report, while noting that water availability is the main issue facing producers.

The industry expects this year’s harvest to fall below the USDA’s 11.7 million tons estimate.